Research On The Risk Management Of Performance Commitment In The Merger And Acquisition Of Cultural Enterprises

With the steady and sustainable development of China's economy and the improvement of people's income level,cultural industry has increasingly become an important driving force and pillar industry to stimulate national consumption and promote sustained economic growth.The government has also introduced a number of supportive policies to create a good environment for the development of the cultural industry,and the scale of the cultural industry continues to expand.In pursuit of rapid development,business expansion and financing,cultural enterprises have joined the merger wave.However,due to the particularity of cultural enterprises,it is difficult to evaluate the invested enterprises in m&a.In order to control the risks of m&a activities and protect the interests of investors in the case of inaccurate valuation,performance commitment agreement has become the main risk control means for investors.However,when setting the relevant terms of performance commitment agreement,most enterprises ignore the characteristics of cultural enterprises,resulting in the failure of "performance commitment" cases of cultural enterprises.From the perspective of the acquirer,this paper selects the case of cultural enterprises' successful use of performance commitment agreement in mergers and acquisitions--company A's merger with company B as the research object,comprehensively USES literature research method and case study method,learns from the successful experience of company A,and establishes the risk prevention and control system for signing performance commitment agreement.First of all,this paper introduces the research background,significance and purpose of valuation adjustment mechanism,points out the innovation points of the paper,sorts out the literature related to performance commitment agreement,defines the concepts of cultural industry and cultural enterprises,enterprise merger and acquisition,performance commitment agreement and so on,and reviews the relevant theoretical basis.Secondly,the case of company A's merger with company B is introduced,includingthe basic information of company A and company B,the motivation of merger and acquisition,the course of merger and acquisition,the agreement plan of performance commitment and the completion of company B.From the point of view of the acquirer,this paper focuses on the study how company A identifies the risks in the process of signing the performance commitment agreement and how to avoid them.Finally,a risk prevention and control system is established through the execution of performance commitment agreements.After that,a risk prevention and control system was established for each link of performance commitment agreement signing.Through case analysis,this paper holds that cultural enterprises,due to their high asset structure,high value of intangible assets,and overly optimistic performance in the future,will lay a foundation for the signing of performance commitment agreements,so it is necessary to establish an effective risk prevention and control system throughout the whole process of signing performance commitment agreements to avoid risks.It is expected that the analysis of this paper can help cultural enterprises in the cultural industry to successfully complete the performance commitment agreement and achieve sustainable development.At the same time,the risk prevention system of the performance commitment agreement is not only applicable to the mergers and acquisitions of cultural enterprises,but also has certain reference value for enterprises in all walks of life to prevent risks when signing the performance commitment agreement.